LESSON 3-4 CONSUMER RIGHTS AND RESPONSIBILITIES Learning Goals: -Describe your rights as provided by...
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Transcript of LESSON 3-4 CONSUMER RIGHTS AND RESPONSIBILITIES Learning Goals: -Describe your rights as provided by...
LESSON 3-4 CONSUMER RIGHTS AND RESPONSIBILITIES
Learning Goals:
-Describe your rights as provided by major consumer protection laws, and list sources of consumer assistance if you have a complaint.
-Describe common deceptive practices that defraud consumers.
-Discuss your responsibilities as a consumer to protect yourself from consumer fraud.
LAWS DEFINING CONSUMER RIGHTS
The Consumer Bill of Rights - 1962 Right to safety
Right to be informed
Right to choose
Right to be heard
Right to redress
Right to consumer education
Airline Passenger Rights – 1999 Confirmed reservations – you must be given a seat
Refunds – when the ticket is cancelled, you must be given a refund or your fares must be applied to another trip.
Compensation for hardships – when there are delays and cancellations, you must be given compensation
LAWS DEFINING CONSUMER RIGHTS
Consumer Technology Bill of Rights Time-shifting – when you record video or audio for later viewing
or listening
Space-shifting – allows you to copy the contents of a CD or other media to a portable or other device for personal use, not commercial purposes
Backup copies – allowed to make backups of purchased CDs, DVDs and other media in case it is destroyed.
Platform of choice – Allowed to listen to music on whatever device you choose.
Translation
LAWS DEFINING CONSUMER RIGHTS
Patients’ Bill of Rights Informed disclosure Choice of providers Access to emergency services Treatment decisions Respect and nondiscrimination Confidentiality
CONSUMER PROTECTION LAWS
Food, Drug, and Cosmetic Act of 1938 – Food be safe, pure, and wholesome – Drugs and medical devises be safe and effective – Cosmetics be safe for human use. Truthful labeling is also required.
Hazardous Substances Act of 1960 – Warning labels must appear on all products that are potentially dangerous to consumers.
Kefauver-Harris Drug Amendment of 1962 – Drug manufacturers must test drugs for safety and effectiveness before they are sold to consumers.
Cigarette Labeling and Advertising Act of 1965 – warning labels regarding health hazards must be clearly visible on products. Warning labels warn consumers of risks and safety issues.
CONSUMER PROTECTION LAWS
National Traffic and Motor Vehicle Safety Act of 1966 – Testing and inspections are required to be sure they meet minimum standards for safety.
Care Labeling Rule of 1971 – Clothing a fabrics must be labeled with instructions for cleaning, wash and dry temperatures, and other care needed to preserve the product.
Nutrition Labeling and Education Act of 1990 – All foods and drinks must have labels that disclose the amount of nutrients including the amount of calories, fat, salt , and other ingredients. In 1993, the act was extended to restaurants that must comply with health claims on signs and menus.
CONSUMER PROTECTION LAWS
Family Educational Rights and Privacy Act (FERPA) of 1974 – a federal law that protects the right of student records. Information can not be released without consent of a parent or guardian. Social Security numbers cannot be used as student ID numbers.
Health Insurance Portability and Accountability Act (HIPPA) of 1996 – protects your health and billing information, including information stored on computer networks, by limiting who can have access to it. Social Security numbers cannot be used for patient identification.
SOURCES OF CONSUMER PROTECTION
Federal Agencies: U.S. Department of Agriculture (USDA)
Food and Drug Administration (FDA)
Consumer Product Safety Commission (CPSC)
Federal Communications Commission (FCC)
Federal Trade Commission (FTC)
Federal Aviation Administration (FAA)
Securities and Exchange Commission (SEC)
SOURCES OF CONSUMER PROTECTION
State and Local Assistance State Attorney General
County and Cities may have consumer protection offices
Private Organizations The Better Business Bureau (BBB)
The Major Appliance Consumer Action Panel (MACAP)
The National Consumers League (NCL)
Consumers Union (CU) – publishes a magazine called Consumer Reports
Public Officials
DEFRAUDING CONSUMERS
Marketplace is full of deceptive and misleading information. Deception is false or misleading claims made about the quality, price, or purpose of a product.
TYPES OF DEFRAUDING
Bait and Switch – an illegal sales technique in which the business advertises a bargain product with the intent of persuading consumers to buy a more expensive product.
Fake Sales – A business advertises a big sale but keeps items at a regular price.
Low-Balling – advertising a basic service at an unusually low price and then claiming additional repairs or services are needed.
Pyramid Schemes – an illegal multilevel marketing gimmick that promises commissions on one’s own sales as well as on the sales of recruits
TYPES OF DEFRAUDING
Ponzi Schemes – a fraudulent investment operation in which money collected from new investors is used to pay off earlier investors.
Pigeon Drop – a scam in which a con artist convinces a person to give up his or her money in return for a share of a larger sum of money.
Fraudulent Representation – telephone or door-to-door solicitation well-known made by people who claim to represent well-known companies or charities are another type of swindle
Health and Medical Product Frauds – involves deceptive advertising for expensive “miracle” pills, creams, or devices to enhance health and beauty.
INFOMERCIALS
An infomercial is a lengthy paid TV ad that includes testimonials, demonstrations, and introductory prices.
Some infomercial are genuine but not all. Infomercials often make product claims that do not
deliver on their promises.
PROTECT YOURSELF FROM FRAUD
Identify deceptive practices Shop smart Stay informed Seek redress
IDENTIFY DECEPTIVE PRACTICES
You can get something for nothing You can buy a high-quality product for an incredibly low
price To receive a prize or “free” product or service, you must
supply your credit card or checking account number or pay a high shipping fee
You will receive a free gift if you act now You or your home has been specially selected You can attend a demonstration with no obligation to buy If you don’t decide right now, you will lose the
opportunity
SHOP SMART
Be aware of prices Understand sale terminology
Sale means that goods are offered for sale, not necessarily at a reduced price
Clearance sale means the business wants to clear out merchandise, it may not be a reduced price
Liquidation means the business wants to sell everything right away, but not necessarily at reduced prices
Computer unit prices Read Labels Check packages carefully Read contracts Keep receipts and warranties Compute total cost Research businesses
STAY INFORMED
Educate yourself about products and services. Check publications such as Consumer Reports Analyze advertisements and assess your needs. Be wary of emotional appeals that are too good to
be true. Ask questions Be aware of the latest scams Report fraudulent practices to consumer protection
agencies.
SEEK REDRESS
Follow these steps:1. Take the product back to the store where you
bought it.
2. Stay firm but not angry.
3. Put your complaint in writing.
4. Send copies of evidence, such as sales receipts, warranties, previous correspondence, and anything else that will support your position.
5. File with consumer protection agencies.
6. As a last resort, seek legal recourse.
ASSIGNMENT
Due Friday, Jan. 30: pg. 111 questions 1-9, 10, 12-14, 16, 18-22